Abstract
This empirical research examined the impact of population growth on unemployment in Nigeria. The study applied annual time series data from 1991 to 2017. The data on population, unemployment, consumer price index, exchange rate and foreign direct investment were tested for unit root using ADF, PP and KPSS unit root tests. The results from the ADF and PP tests revealed that all the variables were stationary at first difference except CPI that is stationary at level. While the KPSS units root test result shows that all the variables are stationary at level. The variables were co-integrated as shown by the Johansen Juselius test for co-integration. The Dynamic Ordinary Least Squares (DOLS) were used in the process of estimating the model. The main results disclosed that population and exchange rate impacted positively with unemployment. Whereas consumer price index, GDP per capita and foreign direct investment impacted negatively thereby reducing the rate of unemployment in the long-run. Government should focus more on attracting foreign direct investment, increasing GDP per capita and the desired rate of consumer price index in order to control the rate of unemployment in the country. Keywords: Population Growth, Unemployment, Dynamic Ordinary Least Squares, Co-integration test, GDP per capita, Consumer Price Index, Foreign Direct Investment. DOI : 10.7176/JESD/10-22-09 Publication date: November 30 th 2019
Highlights
After the independence in 1960, a successful population census was carried out in Nigeria in 1964, which an estimated population of 55.6 million people was taken into account
The results show that population growth is not the sole factor responsible for growing population, but the reverse is the case for Nigeria as both population and unemployment is growing
Unemployment data is measured as the percentage of total labour force, Population is measured as the total population, GDP per capita is measured in current US$, Foreign direct investment is measured as the net inflow (Bop, current US$), inflation rate is measured in terms of consumer price index and foreign exchange rate which is measured in terms of official exchange rate (LCU per US%, period average)
Summary
After the independence in 1960, a successful population census was carried out in Nigeria in 1964, which an estimated population of 55.6 million people was taken into account. The UNDP reported in 2007 that the Nigerian population continuously increased at 3% per annum with birth rate of 40 per 1,000 and death rate of 15 per 1,000 (Gideon, 2016). From analysis of the past census and reports, it is evident that the population has been rapidly growing a high rate of 250% from 1964 to present. This makes it problematic to match the population growth rate and development of the country (Evans, 2011)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
